Is the crypto market headed for a correction? Today, the global market cap shed a cool 3%, dropping to $2.4 trillion. The culprit? Bitcoin’s troubling slump.
After hovering around the crucial $63,000 support level last week, the king of crypto is now hovering around $62,800. Will it hold? Or are we in for a steeper drop?
Analysts have some answers for you.
In a recent analysis, Michaël Van De Poppe highlighted significant shifts in investor behavior during a prolonged market downturn. Retail interest, as measured by YouTube engagement, has notably decreased to 25-30% compared to levels seen in 2021.
This decline has coincided with a bearish phase where alternative coins like Chainlink have seen steep drops of up to 60% against Bitcoin over the past five months.
Bitcoin’s dominance remains a crucial factor shaping market sentiment. Since the introduction of Bitcoin ETFs, the cryptocurrency has maintained stability near its all-time highs. This contrasts sharply with the challenges faced by alternative coins, which continue to struggle amidst the current market conditions.
Van De Poppe also shared insights on meme coins, expressing skepticism towards tokens backed by celebrities such as TrumpCoin, Daddy Tate, and Iggy Azalea’s Mother Iggy, viewing them more as publicity stunts than investments with real value.
Despite this caution, he acknowledges potential opportunities in certain meme coins like Dogecoin (DOGE) and Pepe (PEPE), noting their high volatility and speculative nature.
Over the past 24 hours, many meme coins have experienced significant declines. For instance, DOGE traded at $0.1208, marking a nearly 3% decrease, while PEPE and RUNES saw sharper drops of 8% and 9.84%, respectively. Analysts foresee a potential rebound in altcoins in the coming weeks, suggesting a shift in investor focus from Bitcoin ETFs to opportunities within the Ethereum network.
Ethereum Gains Traction
Attention has recently turned to the Ethereum network, fueled by Santiment’s on-chain data revealing a notable increase in active addresses, surpassing 617,000 — the highest in three months. This surge coincides with the eagerly anticipated listing of newly approved spot Ether ETFs in the US. Market optimism is boosted by endorsements from financial giants like BlackRock and Fidelity, who have already allocated funds in anticipation of these listings, echoing the bullish trend seen earlier this year with Bitcoin ETFs.
Are you feeling bullish or bearish on the crypto market? Tell us.
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